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Questions tagged [free-market]

A free market is an idealized model of a market that is unencumbered government interference (e.g., price/quantity/quality control, taxes on goods, legal restrictions on entering the market, antitrust laws) beyond enforcement of contracts and private property rights. It may also refer to real world circumstances that approximate these conditions.

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Why is it a problem if China is exporting "too many clean-energy goods"?

(Not sure if this should be on the Politics SE, but I'm looking for an Economics-based answer, since the political answer seems obvious enough.) Source In China over the past few days, [US Treasury ...
Allure's user avatar
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1 vote
1 answer

Information asymmetry references and it's relation to freemarkets - reference request?

Is there any reading I can do of what information asymmetry can do to free markets?
More Anonymous's user avatar
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Optimality of the free market and game-theoretic arguments

I recently heard an informal argument that went something like this: Through individual self-interest and freedom of production and consumption, the best interest of society, as a whole, are ...
Richard Hardy's user avatar
1 vote
2 answers

Why does The Price of Anarchy have a lower bound of 1 (and a question about free market economics study)?

The price of anarchy is a ratio between the efficiency of a centralized solution and a solution with decentralized decision makers. The implicit assumption seems to be that the centralized solution ...
user10478's user avatar
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4 votes
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Who first promoted the idea that competition leads to a better economy?

Who first promoted the the idea that competition leads to a better economy?
Geremia's user avatar
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2 answers

What are some market-based solutions to the problem of information asymmetry posed by experience goods and credence goods?

I would like to know how the market, if left to itself (i.e. no government intervention allowed), would solve the problem of information asymmetry in experience goods as well as credence goods. What ...
Joebevo's user avatar
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Do Keynesian policies always lead to stagflation mandating austerity?

Did 1970's stagflation completely refute Keynesian economics leading to a permanent shift to Neoliberalism ? Why have all subsequence economic policies been about centering society around markets with ...
Ash Rivers's user avatar
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2 answers

Researching the "invisible hand" in academic literature

The idea of the invisible hand could be expressed as: in a competitive market, agents acting selfishly in their own self interests will make choices that benefit others. There are innumerable popular ...
Mick's user avatar
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3 votes
2 answers

Should free market consumers have the maximum information easily available?

As far as I know, free markets rely on well-informed consumers. If this is the case, shouldn't an efficient free market provide consumers as much information as possible about a product so that the ...
thosphor's user avatar
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7 votes
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Effects of Eliminating Government Controls on Supply (organ donation)

I was having a discussion with somebody about organ transplants. I gave the free market pov that allowing the sale of organs would greatly increase the supply, and the all-in price would come down ...
Jonathan Rachlin's user avatar
1 vote
1 answer

Understanding distortions in investment in human capital

I am currently reading Economics of The Colour Bar by WH Hutt, and I'm having trouble understanding this bit he has written: “But when the price of any commodity is raised above the free market level, ...
bad_chemist's user avatar
3 votes
6 answers

Why do we spread knowledge across nations?

We have access to lots of knowledge on paper sharing platforms, open course platforms, open-source platforms and question asking platforms and etc, and Tesla opened all its electric car patents in ...
Lerner Zhang's user avatar
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2 answers

What are possible solutions when promoting competition is not applicable?

Usually, more competition means lower prices and higher quality as less effective businesses go out of business. However, it appears that it's not always the case. When there're a lot of health ...
Sergey Zolotarev's user avatar
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Is there any research, theory, or anything which shows how much of a market has to be in power of a few companies to be a force against free market?

According to Free market a free market is a system in which the prices for goods and services are determined by the open market and by consumers. In a free market, the laws and forces of supply ...
Pablo's user avatar
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1 vote
2 answers

Is it the most efficient to allow free transactions in financial markets?

Most beginner level economics books include explanations why it is most effecient most of the time to allow free trade in the market of goods and services. (e.g. the theory of comparative advantage) ...
Ma Joad's user avatar
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56 votes
7 answers

Why do Australian milk farmers need to protest supermarkets' milk price?

Sorry this might be borderline off-topic (and I am an economics layman at best), but I found this rather puzzling and would like to know why this is happening. I just came across an article which ...
FriendFX's user avatar
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Free market vs high income [closed]

While answering this question I was doing some research and found that the high-income world has Free Markets. Is it that because they are high-income, they have free markets, Or, is it that their ...
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Which economical consequences could happen to a country if it forbiddes importing cars?

My country has major economical headaches each 10 years or so, like hyperinflation or defaults or things like that. It's been 17 years since the last major crisis (a larger crisis than the 1930's ...
Pablo's user avatar
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2 votes
4 answers

Value vs. Price and its relation to tariffs

I’m naturally against tariffs as they impede on free trade, and end up hurting the consumer by inadvertently becoming a tax on imports as well as raising the cost of goods. So I'm trying to challenge ...
TecnoPope's user avatar
1 vote
2 answers

Free market defense against anti-competitive behavior?

One argument against a completely free market economy without "government" oversight is the tendency towards anti-competitive behavior. The argument is that government laws are needed to prevent anti-...
Lassie Fair's user avatar
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